AAJ STATEMENT ON GOOGLE ENDING FORCED ARBITRATION

by American Association for Justice

Washington, D.C. - February 23, 2019 - (The Ponder News) -- The following is a statement from American Association for Justice CEO Linda Lipsen on the announcement from Google promising to end mandatory forced arbitration for all full-time employees:

“AAJ applauds the courageous group of women from Google who organized the walkout to call national attention to sexual harassment and the common workplace policy of forced arbitration that silences survivors and allows corporations to escape accountability.

As we celebrate this good news for Google employees, we call on Congress to take action to end forced arbitration for all Americans. We commend Senators Richard Blumenthal and Patty Murray and Representatives Hank Johnson, Jerry Nadler and Bobby Scott for leading on this issue, as well as Senator Lindsey Graham, who last year publicly challenged companies to end forced arbitration as a matter of good business practice.

Some corporations, like Microsoft and now Google have taken action, realizing forced arbitration was bad policy. Until the law is changed, forced arbitration remains the prevailing practice for most corporations, leaving millions of Americans unable to enforce their constitutional right to seek justice and accountability from the corporations who hurt them. Forced arbitration means that corporations can get away with breaking the law and never be held responsible. That’s why Congress needs to step up and pass comprehensive legislation to ensure all Americans, not just employees at Google, can enforce their rights.”

The American Association for Justice works to preserve the constitutional right to trial by jury and to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others—even when it means taking on the most powerful corporations.

Senate votes to undermine Americans’ right to a day in court

Source: National Consumers League



Washington, D.C. - October 26, 2017 (The Ponder News) -- The National Consumers League (NCL) condemns the Senate’s passage of a Congressional Review Act resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule. The rule would have allowed consumers access to courts after big banks like Wells Fargo steal their identity, or credit bureaus like Equifax compromise consumers’ most personal information.

The following statement is attributable to Sally Greenberg, NCL executive director:

“Last night, while most Americans were sleeping, 50 Senate Republicans and Vice President Mike Pence voted to take away our sacred right to a day in court. Today, in the aftermath of massive financial wrongdoings like Wells Fargo’s nearly 1.4 million fraudulent accounts scandal or Equifax’s massive data breach, financial companies will continue to be free to bury binding arbitration clauses in their terms of service. These ‘rip-off clauses’ are designed to prevent consumers from having their day in court or joining together to form a class action lawsuit after they are harmed.

In fact, earlier this year the NCL Board of Directors voted to take NCL’s operating capital out of Wells Fargo and switch to Bank of Labor precisely because of Wells’ requirement that customers to give up their rights. Bank of Labor, Bank of America and many credit unions are thriving without forcing their customers to sign away rights through these odious ‘rip-off clauses.” We applaud CFPB director Richard Cordray, whom NCL is honoring this evening, for his efforts to protect the consumer rights that were just taken away in one fell swoop by this unfortunate Senate vote.

The Senate’s decision to side with Wall Street over consumers is shameful. The denial of one of our most basic rights as Americans -- the right to our day in court -- is a massive step backwards for consumers and our nation. While this may be a setback, the National Consumers league will continue fighting before Congress and the Administration to reaffirm consumers basic rights, including, the right to justice.”

The National Consumers League, founded in 1899, is America's pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.

EQUIFAX’S FORMER CEO ADMITS THE COMPANY CONTINUES TO PURSUE “LEGALLY VIABLE” FORCED ARBITRATION

Source: American Association for Justice

Washington, D.C. - October 6, 2017 (The Ponder News) -- Appearing before the Senate Committee on Banking, Housing, and Urban Affairs today, former Equifax Chairman and CEO Richard F. Smith admitted that since it’s a “legally viable path,” the company still pursues forced arbitration. This admission comes just weeks after Equifax abruptly removed the forced arbitration clause, after massive public outcry, that prevented victims of Equifax’s recent date breach from pursuing justice in court. These efforts to strip consumers of their rights could be stopped altogether if the U.S. Senate were to allow the Consumer Financial Protection Bureau’s (CFPB) forced arbitration rule to go into effect.

“The fact that Equifax is still imposing forced arbitration on its customers, even after their data breach fiasco, further proves why we need to uphold the CFPB rule,” said American Association for Justice CEO Linda Lipsen. “Shame on Equifax for trying to push consumers into forced arbitration after enduring the largest data breach in U.S. history, but it shouldn’t be legal for Equifax to try such a move in the first place.”

Last month it was revealed that 143 million consumers (roughly 40% of all Americans) had their personal information stolen in a massive data breach. Once it became public that Equifax was trying to steer these victims into forced arbitration, the company quickly withdrew the arbitration clause and blamed its existence on a technical error. Smith’s admission proves that unless the CFPB rule exists, companies like his will continue to use forced arbitration to deny their customers access to justice, putting the American public at the mercy of financial institutions and Wall Street banks.

“We’ve seen that when consumers lose their rights, companies like Equifax and Wells Fargo are going to take advantage of them,” concluded Lipsen. “When banks and credit reporting agencies break the law and rip off their customers, Americans should have the choice as to how to hold the corporation accountable.”

Yesterday, Wells Fargo CEO Tim Sloan appeared in front of the same Senate Committee and repeatedly lied about the corporation’s continued use of forced arbitration, drawing further attention to the need for CFPB’s rule.

Wells Fargo May Have Lied to Congress, Say 33 Groups led by AFR and Public Citizen

Source: Americans for Financial Reform

Washington, D.C. - September 3, 2017 (The Ponder News) -- Congress must hold additional hearings to investigate whether Wells Fargo deliberately misled federal lawmakers during an active investigation, said 33 groups led by Public Citizen and Americans for Financial Reform in a letter (PDF) sent today to the U.S. Senate Banking Committee and the House Financial Services Committee. The groups suggest that Wells Fargo executives, including former CEO John Stumpf, may have knowingly and deliberately withheld information related to fraudulent insurance sales practices during congressional hearings held in September 2016.

According to the bank’s own timeline, Wells Fargo learned in July 2016 that more than 800,000 customers had been charged for auto insurance they did not need, and the bank says it ended the activity around the same time that Stumpf testified before the two banking committees about Wells Fargo’s fraudulent accounts scandal. Yet Stumpf’s testimony made no mention of this misconduct, even when he was asked directly whether fraudulent activity might exist in other business lines. The bank later reiterated his denial in written responses to questions from members of Congress.

Withholding relevant information from a congressional inquiry is a criminal offense, punishable by up to five years in prison. The letter calls on the two committees to hold further hearings to investigate Wells Fargo’s newly disclosed abuses and whether the bank lied to Congress.

“Wells Fargo had several opportunities to disclose its fraudulent insurance practices to Congress and chose not to – including in response to direct questions by Members on the two separate occasions,” the letter to the committees reads. “The information on additional abuses that has become public since the earlier hearings makes a strong case for further investigation and additional hearings by your Committees. It also suggests that the bank may have misled your Committees in previous testimony and withheld relevant information in responses to members’ questions for the record.”

“Wells Fargo has long forced defrauded consumers into arbitration to hide its misconduct from public view, but lying to Congress would cross a new line,” said Amanda Werner, arbitration campaign manager for Public Citizen and Americans for Financial Reform. “Having just admitted to nearly twice as many fake accounts as previously reported, Wells Fargo has a lot to answer for.”

“Wells Fargo used forced arbitration clauses and class-action bans to hide abuses and prevent its customers from securing justice or even realizing that problems the bank causes them are widespread,” said Lisa Donner, executive director of Americans for Financial Reform. “It now appears that they have also tried to hide the breadth of problems inside the bank, even in the face of direct questions from members of Congress. Leaders of the relevant committees should be demanding answers and further hearings to get them.”

“Wells Fargo has spent tens of millions on campaign contributions and lobbying Congress,” said Lisa Gilbert, vice president of legislative affairs for Public Citizen. “If the House and Senate banking committees refuse to investigate Wells Fargo after these latest revelations, it will be a clear indication that Congress is siding with big banks instead of their victims.”

Read the letter (PDF).

Sens. Franken, Wyden Lead Push to Stop Trump Administration From Ending Protections for Nursing Home Residents

Washington, D.C. - August 11, 2017 (The Ponder News) -- Sens. Al Franken and Ron Wyden are leading a major effort to push the Trump Administration's Centers for Medicare and Medicaid Services (CMS) to abandon a proposal to scrap protections that prevent nursing homes and long-term care facilities from locking residents into forced arbitration agreements.

"Forced arbitration clauses in nursing home agreements stack the deck against residents and their families who face a wide range of potential harms, including physical abuse and neglect, sexual assault, and even wrongful death at the hands of those working in and managing long-term care facilities," the Senators wrote in a letter Monday to CMS Administrator Seema Verma. "These clauses prevent many of our country's most vulnerable individuals from seeking justice in a court of law, and instead funnel all types of legal claims, no matter how egregious, into a privatized dispute resolution system that is often biased toward the nursing home."

The Senators, joined on the letter by 29 of their colleagues, went on to write, "Therefore, we strongly urge CMS to fully protect many of our nation's most vulnerable individuals by withdrawing this proposal and sustaining and fully enforcing the existing restrictions on pre-dispute arbitration clauses in long-term care facility contracts."

You can read the full letter by clicking HERE